GOLETA, Calif. (Apr. 27, 2009)—Deckers Outdoor Corp. (DECK) reported record results for a positive first quarter led by the success of Ugg, which experienced 66.9 percent growth in sales reaching $91.4 million versus $54.8 million last year. For the first quarter ended March 31, net sales jumped 37.6 percent, hitting a record $134.2 million versus $97.5 million last year. Domestic sales improved 29.6 percent to $102 million over $78.7 million last year. International sales increased 71 percent to $32.2 million compared $18.8 million a year ago.

Classic Tall Romantic Flower boot from Ugg

“We are pleased by our recent performance and proud of our ability to deliver excellent operating results in this challenging economic environment,” says chairman and CEO Angel Martinez. “Our first quarter sales and earnings exceeded plan, driven by higher than expected domestic and international demand for Ugg products as the brand’s spring collection of boots, sandals and casual footwear sold through very well at retail. Sales of Teva products experienced a slight shortfall versus a year ago as a result of the general retail environment combined with the bankruptcy of some accounts… Similarly, a higher level of cancellations and lower reorders during the first quarter negatively impacted our Simple brand’s business.”

Teva brand net sales dropped 5.7 percent to $35.6 million for the first quarter compared to $37.7 million for the same period last year. This was the result of lower pre-booked orders scheduled for delivery in the first quarter compared with the year-ago period, as well as the bankruptcies of three wholesale accounts.

Simple brand net sales for the first quarter decreased 13 percent to $4.4 million compared to $5.1 million for the same period last year. The brand’s sales were negatively impacted by a higher than normal rate of order cancellations due to the general retail environment combined with lower reorders and the loss of international sales, partly as a result of the termination of the brand’s distributor in Japan.

Combined net sales of the company’s other brands, Tsubo and Ahnu, were $2.9 million for the first quarter of 2009. Tsubo was acquired in the second quarter of 2008 and Ahnu in the first quarter of 2009.

Based upon the Ugg brand’s better than expected first quarter results partially offset by lower projected sales forecasts for Teva, Simple and Tsubo, the company is adjusting its full-year revenue outlook. Deckers now expects its full-year revenue to increase approximately 7 percent to 9 percent over 2008, compared to previous guidance of approximately 6 percent to 9 percent.

For the second quarter, the company anticipates that revenue will increase approximately 10 percent over 2008 levels.

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